Updated · The Australian Financial Review · Aug 17
ECB Economists Warn Global Equities Face Correction as AI Rally Lifts Valuations to Dotcom-Era Levels
Updated
Updated · The Australian Financial Review · Aug 17
ECB Economists Warn Global Equities Face Correction as AI Rally Lifts Valuations to Dotcom-Era Levels
3 articles · Updated · The Australian Financial Review · Aug 17
Summary
Five ECB economists said global equities are poised for a correction after a three-year surge fueled by enthusiasm for artificial intelligence.
Dotcom-era valuation levels in tech underpin the warning, with the authors saying AI has driven a blistering rally that leaves markets vulnerable.
The blog argues technological revolutions often produce boom-bust cycles in asset prices, and that risk persists whether current valuations are rational or not.
An earlier ECB assessment focused on U.S. tech stocks, warning that any pullback could spill into Europe after investors piled into AI-linked shares.